The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1887-11-24

The interest on these notes at presen
amounts to s., 23820, as per statement o
comptroller, exhibit E. This, as is stated
by the com ptro!ler, is not certain sum
owing to the fact that most of the Pur-
chasers of lands, having already th'
option of paying off the principal Vi
their notes, are, in many cases, awaiting
themselves of this privilege. The fact
that most of the notes are bearing eight
and ten per cent. interest will inevitably
hasten the payment of the principals, un
til, perhaps, in few years, the entire
amount, $1O6,S1O, will either become
"cash for investment" or be reinvested in
state or United States bonds, bearing al
most four per cent. interest. Ia this latter
case the S9,23S 20, the present income from
land notes will drop to $4,272 40"
The apprehensions expressed in the last
paragraph, that the interest from Land
notes" would eventually become mucl
smaller, were not grOuDdless. According
to the statement from comptroller, dated
June 10, 1897, and printed in the faculty
report as exhibit -, this interest, estimat'
ed a year before at $4,000, amounted, in
June of the present year, to only $3,479.O2.
But the deficit is not due to reinVestment
at lower rates. On the contrary, tbs dus to
a default in the payment of the interest on
the notes already held by the state for the
University. This appears from a state
ment from comptroller, dated May l6,
1887, in which he says, in answer to an in
quiry on this point: "There has only
been a small portion of the items of 3d.
500, interest on land notes, paid; this in
terest is due January l, but not payable,
only at option of owner, before August
1887" See exhibit 2, faculty report, for
entire statement
In this comm unicatlon the cOmptrolle
intimates that the difference between the
estimated income from the land notes
(S1O500) and the actual income ($3 1902
would be paid in by the first of August
Upon this estimate the appropriations for
the present year (18S7-S) were made,
The regents, however, at this writ
ing, are informed that but small
part of this deficit has been
paid in; and they have reason to
fear that at the end of the present scho.
lastic year similar discrepancy will APP
pear between the estimated income from
the land notes and the money actually
collected from this source. If this is the
case reduction OF the present eIpendi-
lures will become imperative, unless there
is corresponding increase from Other
sources.
A reduction IN expenditures will not
only forbid any direct growth of the Uni
versity, but wiki force upon the regency
policy of contraction, which cannot but
irretrievably cripple the institution in its
infancy.
It is assumed that this is not desired
and it therefore remains that, if possible
some additional income be derived from
legitimate sources at present open to the
University. These sources are ample
provided they are utilized. But the
regents can take no steps in this direction
Their application for the control of the
University lands and property was dis
tinctly refused by the last legislature.
But this control was left in the hands OF
the executive officers of the state. They
have the authority to act, under the law
in all matters relating to University lands,
land notes and the investment of Uni
versity funds in bonds. They also have
authority in all questions arising from
the collection of interest on land notes
and bonds. In the belief that
your excellency and your CO.
adiutors of the present state administra-
ton are disposed to do everything in your
power to aid the University in its present
financial strait, the regents take advan-
tage of this opportunity to call attention
to one or two ways in which this can be
done.
In the first place the regents are con
WINGED that the interests of the University
demand the services of an agent, whose
business it shall be to attend exclusively
to the University lands. 1t is admitted
that in the present depressed condition
of the cattle business, the chances are moi
good to sell or lease any large body OF
these lands. But it is believed that by
correspondence, by personal applications
and by some judicious advertising, in
other words, by the use of those means a
man would naturally employ in his pri-
vate business, considerable body of these
lands might be leased. If such could be
done the present pressure upon the Uni
versity might be largely relieved.
In the second place, the regents are in
formed that there have been, for series
of years, deficits in the annual interest on
the land notes, and that these deficits now
amount to $22,44440. Also principal
over $4,000. 1t is in the power of the
attorney general, the regents presume, to
take the necessary steps to collect this
back interest and principal, and your ex-
cellency is respectfully requested to
call, at the earliest possible moment,
his attention to this important matter.
In the third and last place attention is
respectfully called to the fact that, of the
original fifty leagues set aside for found
ing a University of the Republic of Texas
in 1889, 22,239 acres have been forfeited,
14,l4S are unsold lowing partly to con-
fict), and S,O22 have been resumed by the
state. This is shown by the following
table:
= = II